19101. Mechanics' Bank (Philadelphia, PA)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
September 26, 1857
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
b995df68

Response Measures

Full suspension

Description

Newspaper accounts from Sept. 26–28, 1857 describe large crowds withdrawing specie (a run) at Mechanics' Bank and then the bank joining a broader suspension of specie payments by Sept. 28. Articles describe suspension but do not report a definitive reopening or permanent failure for Mechanics' Bank in the provided snippets, so I mark outcome as unsure. Dates corrected/standardized from article datelines.

Events (2)
1. September 26, 1857 Run
Cause
Macro News
Cause Details
Panic stemming from wider financial crisis of September 1857 and news of suspensions in other cities (e.g., Baltimore) produced heavy withdrawals in Philadelphia.
Measures
Initially paid specie for tens; later limited redemptions (redeeming fives only) as course changed.
Newspaper Excerpt
Crowds of alarmed and interested persons surrounded the Savings Institutions ... The Banks were besieged before 10 o'clock by anxious and excited crowds. The Mechanics' Bank paid specie for its 10's.
Source
newspapers
2. September 28, 1857 Suspension
Cause
Macro News
Cause Details
Banks in Philadelphia suspended specie payments amid the broader 1857 financial panic and contagion from other suspended banks (Baltimore, Pittsburgh, etc.).
Newspaper Excerpt
The Mechanics' Bank and all the Southwark Banks, and the North American Bank, have suspended.
Source
newspapers

Newspaper Articles (8)
1. September 26, 1857 Evening Star Washington, DC
Article from Evening Star, September 26, 1857

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Article Text

TELEGRAPHIC NEWS. FROM THE ASSOCIATED PRESS. The Financial Crisis in Philadelphia. Philadelphia, Sept. 26.-The corner of Third and Chesnut street is again the scene of excitement this morning. Ciowds of alarmed and interested persons surrounded the Savings Institutions this morning before 9 o'clock. These declined paying out their deposits, requiring two weeks notice to be given. The Banks were besieged before 10 o'clock by anxious and excited crowds. The Bank of Pennsylvania re-opened, doing its ordinary business, but paying out nospecie. The Mechanics' Bank paid specie for its "10's." The Girard Bank refused to do any business, and gave no satisfaction to its note holders and depositors. LATER.-The Giraid Bank has come to terms, and is redeeming its "5's" with specie, but refusing to honor checks. Most of the other banks are taking checks. ANOTHER Dispatch.-An additional excitement has been produced by the news of the suspension of the Baltimore Banks. The Tradesman's Bank pays checks and all. ADDITIONAL-There is no concert of action among the Banks, each apparently taking a different course. The North American is paying specie for its ten's, but is issuing no notes on checks. The Bank of Commerce is refusing specie, but is paying notes on checks. STILL LATER-The Bank of North America is paying all its notes, having received specie from New York last evening, and is now represented to have more in its vaults than the amount of its Mils in circulation, but is certifying its checks. The following Banks are redeeming its fives: The Commercial, the Philadelphia, and the Manufacturers and Mechanics The Farmers' and Mechanics' Bank are paying specie for "ten's." The Northern Liberties, and Western, Banks are redeeming its fives in cases of necessity. The Bank of Penn Township, the City, and Consolidation Banks pay nothing. Allothe Banks, how. ever. certify checks except the Girard, which is suspending business entirely. Some of the Banks WILL receive no deposits. 26th p. m.-Private advices say that the Banks of Reading nd Pittsburg have suspended. The Southwark Bank pays all its bills. The Kensington Bank pays its fives only

2. September 28, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, September 28, 1857

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Article Text

LATEST NEWS. THE RECEIVED BY MAGNETIC TELEGRAPH BANK DIFFICULTIES. THE BANKS OF PHILADELPHIA, PHILADELPHIA, Saturday, Sept. 26, 1857. Third and Chestnut streets are again the scene of excitement. Crowds surrounded the Savings Institutions before 9 o'clock 8. m. out two banks deposits, requiring weeks' They notice. decline The paying were besieged before 10 o'clock. The Pennsylvania Bank reopened, and is transacting business, but paying LO specie. The Mechanics' Bank is paying specie for tens. The Girard Bank has come to terms partially, re. deeming fives with specie, but refusing to honor the checks of depositors. Most of the other banks are marking checks good. There is no concert of action among the Banks each is apparently taking a different course. The Bank of North America is paying specie for tens, but issuing no notes on checks. The Bank of Commerce is refusing specie, but is paying out notes for checks. The following banks are paying specie for 5a: Commercial, Manufacturers and Mechanics', and PhiladelThe Farmers and pay The Northern Liberties pay specie phia. 10s. Mechanics' and Western specie for for bills in cases of necessity. The Bank of Penn Township, and the City Consolidation Bank pag nothing. All banks, however, except the Girard, certify checks. The Girard has entirely suspended business. Some of the banke will receive no deposits. 11:15--a. m. The Girard Bank is now paying specie for fives and certifying checks. The Tradesman's Bank pays everything, checks and all. The Bank of North America is paying all its notes. It received specie from New-York last night, and represents that it has more in its vaults than its amount of bills. It is certifying checks. The Board of Brokers passed a resolution this morning to the effect that all settlements in the purchase of stocks may be made by certified checks on any of the city banks current on the day of settlement. The Southwark Bank pays specie for all its bills. The Bank of Kensington pays for fives only. The Pittsburgh, Harrisburg, Lancaster and Reading banks have suspended. 7 p. m. A meeting of the presidents of the banks was hold this afternoon, and it is reported that a for want of concert of action they adjourned without arriving at any determination. It was thought they would determine on a full suspension, as practiced by some of the banks to-day, but which was not general on account of the North America, Mechanics', and some of the other banks receiving a supply of specie. There was also a meeting of the cashiers of the vs. rious banks, but their action is not yet known. 19 p. m. The bank presidents met to-night. They had & conference with the Governor, and asked him to call a special session of the Legislature for October 6, withthe view of affording relief to the banks from the penalty of forfeiture of charter imposed by the law of 1850. Several of the banks, however, as not acting under this law, including the Pennsylvania, Farmers' and Mechanics', Philadelphia and Western. The Governor expresses a desire to consult Attorney-General Franklin, who is not in town. No doubt the proclamation calling an extra session will be issued on Monday morning. PHILADELPHIA, Sept.27,1857. It is understood that the Governor has determined upon calling a special session of the legislature, to as semble on the first Tuesday in October. The prociamation will be issued to-morrow.

3. September 29, 1857 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, September 29, 1857

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Article Text

PHILADELPHIA, Sept. 28.-The banks of this city commenced repeating the course pursued on Saturday: the Girard paying specie for fives, &c. The Mechanics' Bank and all the Southwark Banks, and the North American Bank, have suspended. In all about eleven have suspended, and the suspension will probably become general.

4. September 29, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, September 29, 1857

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Article Text

BANK DIFFICULTIES. THE PHILADELPHIA BANKS. PHILADELPHIA, Monday, Sept. 28, 1857. The Banks are pursuing the same course to-day that they pursued on Saturday. The Girard Bank is paying out specie on five dollar bills, and the Mechanics' and Southwark on all their notes. The Bank of North America suspended about 11 o'clock, and the suspension will now probably become general. PHILADELPHIA, 12 M. The Mechanics' Bank now redeems notes of $5 only. The following banks also redeem fives only: The Consolidation, the Northern Liberties, the Mechanics' and Manufacturers', the Commercial, the Western, and the City. The Philadelphia Bank pays out no specie, but redeems checks with its own notes. PHILADELPHIA-1 p. m. The Pennsylvania Bank is now paying out its own notes for checks, but refuses specie. The Mechanics' and Manufacturers' Bank is paying no specie. All the Banks of the city have changed their course since the opening hour. Some of them refuse to certify checks, but give due-bills to deposit with other Banks. It is just rumored on the street that the Governor refuses to issue a proclamation calling the Legislature together, unless the Pennsylvania Bank is placed OR & par with the other Banks, and her notes received on deposit. All is confusion and disorder, but it is not attended with the excitement that has existed in former days of trouble. Every kind of business is completely paralyzed, and it is impossible to make collections. 9 P.M. The Board of Trade have determined to call a meeting for & public expression of the various business interests of the city, with reference to the proposed legalization of the suspensions, believing that the best interests of the community and the State will be subserved thereby. It was suggested at the meeting of the Board this evening that where parties have notes protested only because they refuse to pay other than in par currency, it is the duty of the collecting bank or agency to have that fact made as public as the protest. The Presidents of the Banks have agreed to rectore the Bank of Pennsylvania to & position at the ClearingHouse and to receive its notes and discount liberally for their customers. Had this been sooner done there would have been no suppensions. SPECIAL SESSION OF THE LEGISLATURE. The proclamation of the Governor to convene an extra session of the Legislature will be published to. morrow morning. The proclamation saye: Whereas & perious financial revulsion resulting in the suspension of epecie payments by the Backs of this and other States, and wheresa, the fatlure of many long established commercial houses is leading to the destruction of confidence and to a general embarrasement and deprese on in trade, and is threatening to affect, disastrously. the credit of the Commonwealth and the great industrial interests of the people, and it requiring prompt and efficient action to relieve the alarmed and suffering community, therefore, I convene the Legislature, to meet on the 6th of October, and adopt such measure as the present exigency requires." The Governor has not yet determined what course to pursue regarding a special session of the Legisla. ture. Two Committees-one from the Banks-are now in private conference with him. Much feeling is said to exist between the banks-some, which are incorporated under the old law, and do not forfeit their charter, opposing the call of the Legislature. It is stated that if the Governor does not countermand his order, the proclamation will be issued to-morrow morning.

5. September 30, 1857 Staunton Spectator Staunton, VA
Article from Staunton Spectator, September 30, 1857

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Article Text

# THE SUSPENSION IN PHILADELPHIA. A letter from Philadelphia, written on Saturday, says: The excitement produced by the Bank suspensions yesterday has been extensive. Almost immediately upon the announcement that the Bank of Pennsylvania had ceased to pay specie, the Girard, Mechanics', Commercial, Farmers' and Mechanics', Western, Philadelphia and other Banks were beset by anxious note-holders, demanding specie. In an incredible short period of time, the tide of emigration flowed into the buildings of all these concerns, and the panic became general. The police were stationed about in the different Banks, to prevent any regular outbreak. Speeches, arguments, exclamations, inquiries and denunciations were rife upon the prevailing topic. Some funny scenes were enacted in the crowd. One rough and powerful looking fellow, evidently from the rural districts, went about flourishing a bag of gold which he had just obtained for some notes which he happened to present in time. At a meeting of Bank officers held yesterday afternoon it was resolved that the payment of specie for the notes or other obligations of the Banks should be suspended this morning, and that it is therefore understood, that whilst all our Banks will be open for business as usual, coin will not be paid out. This course has very wisely been determined on, with a view to sustain and, indeed, to save the business community. Properly viewed, it is a measure of self protection in which our citizens are all interested. # THE SUSPENSION IN BALTIMORE. The Baltimore American of Monday, referring to the Bank suspension in that city, says: The immediate effect of the suspension on Saturday was to brighten the aspect of commercial affairs and relieve the apprehensions so constantly prevailing for the past month. The price of money fell from 2 1-2 to 1 1-2 per cent. and an advance of prices occurred at the stock board. The disasters that threatened the business community have thus been arrested, and the general feeling among the merchants was one of approval of the course adopted by the Banks. According to a rigid construction of the charter of our Banks they forfeit their corporate franchises by the suspension, but inasmuch as it has been general and was invoked by an unavoidable necessity, to disregard which would have produced the worst results, there will be no hesitation on the part of Legislature in taking any action that the contingency may require. # RAISING THE CENTRAL AMERICA. The New York Post says that negotiations are going on between the Boston Submarine Armor Company and the underwriters of the Central America, to raise her hull, which is supposed to lie in about 28 fathoms water. The specie in her alone would furnish ample inducement for the experiment, if her position can be accurately fixed, and that it can, is probable, from the fact that Captain Herndon was reported to have given her position to the vessel which refused to come to his relief. Should the work be undertaken promptly, there is thought to be a reasonable chance of success. It is now positively known that Dr. Tate, of Virginia, has been appointed Sixth Auditor of the Treasury, in the place of Col. Phillips; and James Madison Cutts, father-in-law of Senator Douglas, has been appointed Second Comptroller vice Mr. Brodhead removed.

6. October 1, 1857 The Weekly Pioneer and Democrat Saint Paul, MN
Article from The Weekly Pioneer and Democrat, October 1, 1857

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Article Text

Monetary Affairs In the East. When the first failures which occurred in the East were announced. it was generally believed that the crash would be confined to the seaboard cities, where the stock gambling had prevailed to the greatest extent. and which was said to be the cause of the monetary crash. And as the cheering hopes of brighter times appearing, were seattered over the country, the Nation rejoiced in the apparent soundness of the financial world. But searcely has the sounds of gladness ceased to reverberate. until a more portentous cloud is seen to gather. and that too, in a section of country the least anticipated. In yesterday morning's PIONEER AND DRMOCRAT, the first indications of the rising storm in the firm. old Commonwealth of Pennsylvania were announced in the partial suspen sion of some of the strongest Banks in Philadelphia. Another day's later news has been received. and sad news it is to be sent forth from the Old Keystone. Read what the Telegraph announces. under date of the 26th: Philadklphia. Sept. 26, to A. M. Third and Chestnut streets are again the scenes of excitement. Crowds surrounding the Savings Institution before 9 o'elock, . M. They decline paying out deposits, re quiring two weeks notice. The banks were besteged before 10 o'clock. The Pennsylvania bank re-opened and is transacting business, but paying no specie. The Mochanics' Bank paying specie for tens. The Girard Bank refuses to do any business, and renders no satisfaction to depositors and bill holders. Most of the other banks were making checks good. There is no concert of action among the banks, each is apparently taking a different course. The Bank of North America is paying specie for tens. but issuing no notes or checks. The Bank of Commerce is refusing specie, but is paying notes for checks. PHILADELPHIA, Sept. 26, 12 M. The Girard Bank is now paying specie for fives and certifying checks. Additional excitement was produced by the news from Baltimore of the suspension here.

7. October 2, 1857 Wilmington Journal Wilmington, NC
Article from Wilmington Journal, October 2, 1857

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Bank Suspensions in Philadelphia. PHILADELPHIA, Sept. 26.-The excitement in this city continues. The Bank of Pennsylvania is paying no specie. The Mechanics' Bank is redeeming its ten. The Girard Bank is redeeming its fives, but refuses to pay checks. Most of the other banks are taking checks. The Savings Institutions require two weeks notice before paying checks. [SECOND DESPATCH.] PHILADELPHIA, Sept. 26.-The news of the suspension of the Baltimore Banks has caused additional excitement: The Tradesmen's Bank pays everything, also the North American. The following Banks pay fives : Commercial, Philadelphia, Manufacturers' and Mechanics', Farmers', Farmers' and Mechanics'. Species is paid for tens of the Northern Liberties and Western fives in cases of necessity. The Pennsylvania Township and Consolidation Banks have totally suspended all payment of certified checks except on the Girard Bank. Some Banks will receive no deposits.

8. October 3, 1857 Semi-Weekly Standard Raleigh, NC
Article from Semi-Weekly Standard, October 3, 1857

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Article Text

The Philadelphia Banks. PHILADELPHIA, Sept. 28.-The Banks of this city commenced repeating the course pursued on Saturday : the Girard paying specie for fives, &c. The Mechanics' Bank and allothe Southward Banks, and the North American Bank, have suspended. In all about eleven have suspended, and the suspension will probably become general.